Mercuria Energy Group, a Geneva-based commodity trading firm, is investing in Black Bayou Energy Hub LLC, an early-stage gas storage facility in Louisiana, looking to strengthen its position in the gas industry.
The investment in gas storage in Louisiana (undisclosed capacity) comes amid the next wave of liquefied natural gas export facilities coming from the United States, which is set to become the largest exporter of the super-chilled fuel in 2023. There are currently five new LNG projects or expansions underway in Texas and Louisiana, with more planned.
Mercuria has brought on a team of industry veterans over the past year and a half to expand its already-sizable natural gas and power businesses and launch physical LNG trading. Nick O’Kane, who built Macquarie’s commodities division into a major player in natural gas, particularly in the U.S., joined the firm last month. Mercuria also brought on dealmakers Robert Lawson from BP and Steve Hill from Shell to head up its LNG division.
Mercuria has made a series of investments in gas and renewable energy after making more than $4 billion in profits over the past three years. It made a $200 million private placement in renewable energy venture MN8 Energy LLC, acquired British biofuel retailer Lord Gas and became the largest shareholder in North Sea gas producer Serica Energy.
The proposed facility would utilize underground, naturally formed salt caverns and be equipped to technically store natural gas, a process also used at other existing natural gas storage facilities on the U.S. Gulf Coast.
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